September 2013's electronic check transaction volumes were up 79% and returned check transactions were up 1646% as compared to August 2013.

Total dollars processed for September set a new record for the company by exceeding $29,500,000.

As of yesterday, the company's transaction totals have continued the trend of high growth. With about half of the month remaining, October 2013's electronic check transaction volumes were already up 86% and returned check transactions were up 336% as compared to September 2013. We estimate that we will more than double September's record and exceed $70,000,000 dollars in transactions in October 2013 and set a new company record for dollars processed in a month.

Michael Long, CEO, said, "We are excited about the growth in transactions we are currently experiencing. These increases started in the last few weeks of the third quarter through the growth in new customers. We believe this is a positive trend and look forward to the resulting positive growth in our financial metrics for the fourth quarter of 2013."

Our third quarter earnings are anticipated being released in our 10Q on or about November 14, 2013.

About Payment Data Systems, Inc.

Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of products to deliver world-class payment acceptance. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.

Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by safe harbors. Those statements include, but may not be limited to, all statements regarding our and management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, the factors detailed from time to time in our filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. We believe that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.